“The 504 program is a viable, valid opportunity to sustain your small business.” – Keith Andersen, NPI Solutions
Press Release – updated: Mar 13, 2018 10:00 PDT
SAN FRANCISCO, March 13, 2018 – Capital Access Group (www.capitalaccess.com), a commercial real estate lender specializing in U.S. Small Business Administration 504 loans for growing businesses, recently helped Kevin Andersen, CEO of NPI Solutions, Inc., to secure $7,309,275 in total project financing through the SBA 504 commercial real estate loan program. The funds were used to purchase a 52,000 square foot industrial office lab space on a 3.8 acre parcel located in Morgan Hill, San Jose, California, an area known for its high technology research and development firms and manufacturing facilities.
Contract manufacturer NPI Solutions, Inc., partners with industrial, technology, medical, and science businesses to design their next-generation products from concept, to prototype, to final assembly and test, to life-end support. NPI, founded in 2000, has experienced exponential growth, with operations in San Jose as well as a global presence in Asia, where they own two manufacturing facilities in Suzhou, China, and Singapore.
After 16 years of leasing and subleasing space in Silicon Valley, Kevin Andersen and his son Keith, who serves as the Director of Design Engineering for NPI, decided it was time to secure a building of their own to lock in costs and make it possible to manage the maintenance of the building.
We knew we wanted to keep a sufficient amount of money within the company for operations. The 504 loan allows us to amortize the overall costs over time.
Director of Design Engineering, NPI Solutions, Inc.
â€œWe know where we stand now,â€� said Keith Andersen, Director of Design Engineering, NPI Solutions, Inc. â€œWe can model what the business looks like in five years, 10 years, and 20 years, because we are able to fix the costs and understand them more specifically. We can also manage the maintenance of the building without landlord controls.â€�
The low, 10 percent down payment is what attracted the Andersens to the SBA 504 loan program, according to Keith.
â€œWe knew we wanted to keep a sufficient amount of money within the company for operations,â€� he said. â€œThe 504 loan allows us to amortize the overall costs over time.â€�
The Andersens also appreciated Capital Access Groupâ€™s professional, unbiased service.
â€œCapital Access Group is about facilitating the loan, but theyâ€™re not there just trying to sell you their product,â€� said Keith. â€œTheyâ€™re here to facilitate the loan process.â€�
â€œItâ€™s a stressful time, buying a commercial building for the first time, where you donâ€™t know the ins and outs,â€� said Kevin Anderen, CEO, NPI Solutions, Inc. â€œClaudia (Cohen) was pleasant and professional, offering unbiased support as we assessed financial institutions.â€�
â€œWe were so pleased to help the Andersens secure a location for their U.S. expansion,â€� said Claudia Cohen, Senior Vice President, Capital Access Group. â€œNPI currently employs 250 people globally, including 160 people in Silicon Valley, and they saw a 50 percent increase in growth as a result of the new facility in 2017. They are expecting an additional 20 percent plus growth in 2018. This is great news for NPI Solutions and for the community.â€�
About Capital Access Group: Capital Access Group is a leading statewide Certified Development Company based in San Francisco, authorized by the U.S. Small Business Administration to provide long-term, fixed-rate financing through the SBA 504 loan program, which offers 90 percent financing to business owners for the purchase, renovation, or construction of commercial real estate for their growing businesses. Founded in 1981, Capital Access Group has helped thousands of entrepreneurs grow their businesses and realize their dreams of owning their buildings. Currently, the SBA 504 interest rate is 4.92 percent, fully amortized and fixed for 20 years. For more information, please visit www.capitalaccess.com.
Source: Capital Access Group